SAA ‘RACKED BY GRAFT AND FRAUD’
…under Dudu Myeni, says State Capture Inquiry
JOHANNESBURG
- The first part of the State Capture Inquiry report has recommended that nu merous former high-rank ing South African Airways officials be investigated for fraud and corruption during the tenure of the airline’s ex-chairperson Dudu Myeni.
“SAA declined during the tenure of Ms Myeni to an en tity racked by corruption and fraud. Despite this, she was re tained as its chairperson well beyond the point at which she should have been removed,” the report states.
The 874-page first section of the report was handed over to President Cyril Ramaphosa on Tuesday evening by the inqui ry’s chair, acting Chief Justice Raymond Zondo, at a low-key ceremony at the Union Buildings.
The second section is ex pected to be handed over by the end of January, and the third by the end of February.
The report recommended that law enforcement agen cies and the National Prosecuting Authority investigate numerous cases of corruption and fraud at SAA, SAA Techni cal and SA Express, uncovered during three years of hearings. These include probes into:
» Myeni illegally disclos ing the identity of a whistleblower;
» What happened to mil lions of rands that allegedly flowed into the bank accounts of Myeni and the Ja cob Zuma Foundation from a housing project in the Free State province; » Whether Myeni is guilty of fraud for “knowingly” mis representing decisions tak en by SAA’s board to two finance ministers;
» Whether R28.5 million was paid, in apparent kickbacks, in a deal with Swissport for a ground handling contract; » Whether JM Aviation paid any VAT to SARS on the R28.5 million it received from Swissport;
» The affairs of former Air ports Company South Afri ca group treasurer Phetolo Ramosebudi and Eric Wood, a businessman linked to the Gupta family, for corruption linked to an interest rate swap deal.
The report also ruled that:
» The Airports Company of South Africa should take steps to recover millions of rands paid to Gupta-linked Regiments Capital under the abovementioned interest swap contract;
» Former SAA Technical pro curement head Nontsasa Memela, and others, be in vestigated by the NPA for forging documents. The report also suggested that Memela be probed by the Legal Practice Council and, if found guilty, struck off the roll of advocates;
» Former SAA board member Yakhe Kwinana be probed by the South African Insti tute of Charted Accountants as she appeared to have “no clue” about some of the ba sic obligations the job entails.
In a statement on Tuesday, President Ramaphosa said he would be submitting the full report, together with an “in dication” of how its findings would be implemented, to Parliament by the end of June.